Valuations Too Stretched in Tech? Probably Not: Pros

On Wall Street money pros are starting to wonder if the sell-off in technology stocks is a sign that the sector has climbed too far too fast.

The chatter has everything to do with cracks that are starting to appear in the story. Recent developments haven't been terribly bullish.

Considering the following: - SanDisk recently lowered guidance citing weaker than expected demand.- Cisco said it was not overly optimistic about this year due to a slowdown in government spending.- BofA downgraded IBM in part, due to slower US government spending.

What should you make of it all? Could this be the next cloud to overhang technology?

“It’s not great,” admits trader Karen Finerman. “I don’t love hearing that the government is spending less on tech.”

That said, she doesn’t think there’s any cause for concern. Looking at the sector, she doesn’t think valuations are terribly stretched. She does, however, think you have to pick and choose your stocks. “I still want to be long Microsoft but of course it could lower.”

Then what should you make of the recent sell-off?

“Investors are looking for an excuse to take profits,” explains trader Guy Adami. “After all it’s been a fantastic rally,” adds Tim Seymour.

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Trader disclosure: On Apr 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is short APPL CALLS; Karen Finerman is long BAC; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long HPQ; Karen Finerman is long RIMM; Karen Finerman is long GRPN PUTS; Karen Finerman is long SPY; Karen Finerman is long IWM; Karen Finerman is long MDY; Pete Najarian is long AAPL CALLS; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX CALLS; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long AIG CALLS; Pete Najarian is long TFX CALLS; Pete Najarian is long SCCO CALLS; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long BTU; Guy Adami is long NUE; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long YHOO; Tim Seymour is long CSCO; Tim Seymour is long WMT